The growth in credit card and online transaction use has been accompanied by a substantial growth in fraud and identity theft. For example, storage of credit card information on electronic information systems can enable large-scale credit card fraud.
Another common form of fraud is increasing the charge after the consumer has agreed to the fee or amount. For example, a small amount is added to a restaurant bill, service bill, or other transaction. Since consumers generally do not see the actual charges until their credit card statements arrive, this type of fraud is difficult to detect.
A number of systems are available to reduce the damage that may be caused by credit card fraud. For example, many financial institutions offer customers the ability to monitor their credit and other accounts by electronically accessing their accounts. Customers may then notify the financial institution if any improper transactions are noted.
Although consumers may increase their financial security using available systems, they may not provide optimal, efficient fraud mitigation.